While high interest rates have cast a shadow over much of the U.S. housing market, a select group of areas are experiencing a surge in popularity. These superstar markets are hotter than ever, attracting a record number of views per property compared to the national average, according to an analysis done by Realtor.com.
Why Are These Housing Markets So Hot?
“This intense demand is a result of a limited supply of houses for sale,” explains housing analyst Hannah Jones. “With fewer options on the market, competition heats up, driving up views and pushing home prices higher in these top spots.”
While the national average home price nudged up slightly to $442,500, many of the hottest markets boast significantly lower median home prices. In fact, 13 of the top 20 markets have median prices below the national average. These affordable havens have seen a remarkable 13.6% increase in home prices over the past year, showcasing their growing appeal.
However, this price growth hasn’t deterred buyers, as homes in these hot markets are selling at a breakneck pace. In May, properties flew off the shelves three weeks faster than the national average of 44 days.
Superstar Cities of the Northeast and Midwest
The hottest markets are concentrated in just two regions: the Northeast and the Midwest. Manchester-Nashua, New Hampshire, takes the crown for the eighth time in the past year. Homes in this area receive a staggering 3.6 times more views than the national average.
While the median list price of $630,000 might seem high, it pales in comparison to nearby Boston, a pricier option at $960,000. Manchester’s affordability is further enhanced by the state’s lack of income and sales taxes, making it a magnet for young professionals and families priced out of pricier coastal cities.
Following closely behind is Hartford, Connecticut. Homes here typically cost $447,000 and hold immense appeal due to their proximity to New York City, just a 90-minute drive away.
This easy access to a major metropolis, combined with a lower cost of living, makes Hartford an attractive option for commuters. Springfield, Massachusetts, nabs the third spot, likely due to its combination of attractive home prices ($400,000) and low unemployment.
Finding Value in the Midwest
The Midwest offers a haven for budget-minded buyers. Three Ohio cities, Canton, Akron, and Columbus, all made the top 20. Akron boasts the lowest median price in this group at $252,000. Beyond affordability, Ohio offers a low cost of living and abundant parks and recreation, making it a great choice for families seeking a comfortable and active lifestyle.
The title for the most affordable market in the top 20 goes to Springfield, Illinois, where the average home costs just $216,000. This city also offers a central location near St. Louis, Chicago, and Indianapolis, making it a convenient hub for those who travel for work or pleasure.
A Glimmers of Hope for Urban Markets
There’s positive news for those seeking homes in larger urban areas. As remote work becomes less common, some big-city markets are experiencing a resurgence in interest. Philadelphia, Kansas City, Chicago, Las Vegas, and Baltimore all saw significant jumps in their rankings.
The good news for buyers is that prices in these areas haven’t skyrocketed – they climbed a modest 1.3%, slightly above the national average but still relatively affordable. This stability, coupled with an increase in available listings and a decrease in rents, suggests a more balanced housing market on the horizon, according to housing analyst Jones.
“We’re starting to see an increase in affordable listings, and rents are even coming down,” she says. This suggests a more balanced housing market on the horizon, potentially offering more opportunities for first-time homebuyers.
Top 10 Hottest Housing Markets – May 2024
1. Manchester-Nashua, N.H.
Hotness Rank: 1
Leading the list is Manchester-Nashua, N.H., where the market is exceptionally competitive. Properties here receive 3.6 times more views than the U.S. average, indicating high buyer interest. The median days on market is just 14 days, showcasing the rapid pace at which homes are sold. The median listing price is at a robust $630,000.
2. Hartford-West Hartford-East Hartford, Conn.
Hotness Rank: 2
The Hartford-West Hartford-East Hartford area ranks second, with properties receiving 4.5 times more views compared to the national average. Homes here typically sell within 16 days. The median listing price in this market is $447,000.
3. Springfield, Mass.
Hotness Rank: 3
Springfield, Mass. is another hot market, where properties attract 3.3 times more views than the national average and sell in a median of 17 days. The median listing price stands at $400,000.
4. Concord, N.H.
Hotness Rank: 4
Concord, N.H. ranks fourth, matching Springfield in views per property at 3.3 times the national average and also seeing homes sell in a median of 17 days. The median listing price here is a significant $600,000.
5. Rochester, N.Y.
Hotness Rank: 5
In Rochester, N.Y., properties receive 3.2 times more views than the average U.S. property. The median days on market is 17 days, and the median listing price is more affordable at $310,000.
6. Rockford, Ill.
Hotness Rank: 6
Rockford, Ill. shows strong demand, with properties getting 3.3 times more views and selling within 21 days on average. The median listing price here is $236,000.
7. Worcester, Mass.-Conn.
Hotness Rank: 7
The Worcester, Mass.-Conn. area is ranked seventh, where properties attract 2.7 times more views than the national average and sell within 19 days. The median listing price in this region is $545,000.
8. Canton-Massillon, Ohio
Hotness Rank: 8
Canton-Massillon, Ohio has a competitive market with properties receiving 2.7 times more views and typically selling in 21 days. The median listing price is $270,000.
9. Providence-Warwick, R.I.-Mass.
Hotness Rank: 9
The Providence-Warwick, R.I.-Mass. area sees properties garnering 2.6 times more views than the national average. Homes here usually sell in 19 days, with a median listing price of $586,000.
10. Akron, Ohio
Hotness Rank: 10
Akron, Ohio rounds out the top ten, with properties attracting 3.1 times more views than the U.S. average and selling in a median of 23 days. The median listing price in Akron is $252,000.
10. New Haven-Milford, Conn.
Hotness Rank: 10
Also tied for the tenth spot is New Haven-Milford, Conn., where properties receive 3.1 times more views than the national average and sell in 24 days on average. The median listing price here is $427,000.
The hottest housing markets of May 2024 demonstrate diverse regional strengths, with the Northeast showing particularly strong demand. High views per property, quick sales, and varying median listing prices reflect the competitive nature of these markets. Whether you are a buyer, seller, or investor, understanding these trends can help you navigate the current real estate landscape more effectively.
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